Hi there.

Just wanted to ask if the fluctuations in the BLR could backfire on the ASB loan?

For example:
Year 0 (Year loan was taken) - BLR = 5.5%
Year 1 - BLR = 5.5%
Year 2 - BLR = 6.6%

At Year 2, due to the increase in BLR the monthly installment for the loan would have also increased right? Will this increase in monthly installment effect the total return or the plan to use the annual ASB dividen to repay back the loan?

Appreciate your expert advice

That is true, but since the topic is about ASB loan I was just wondering how it would be effected if say the BLR increases.

So basically if say the BLR increases to a point where the annual dividends cannot cover your loan repayment, you should cancel the loan and opt out?
Is that correct?

Reason I'm asking is how do we leverage out the ASB loan when say BLR increases and ASB dividend does not increase.

Another question, for the loan to work should I be taking in the maximum amount and the maximum time?